Stock Market Forecasting - Fundamental and Technical Analysis

Market forecasting is a challenging part of stockHowever some believe that the simultaneous study
market analysis as market prediction has become theof fundamentals and technical can result better for
most complex task of an analyst. Market forecastingday trading.
helps a trader to choose the type of security, theTechnical Analysis
time of buy or sell a security and the amount thatTechnical analysis is the method of evacuating
they should invest on that security.securities by analyzing stock charts. It includes the
The type of analysis used by the traders or marketanalysis of market data, volume and open interest in
analysts falls into two major categories-order to predict the future trend of a stock. The
1. Fundamental Analysisanalysts study the company's past performance and
2. Technical Analysisstudy the charts to analyze if there are any patterns
Both of the above methods rely on certainin the price of that security. Information about a
information that comes from various news sources,stock's price, volume and other important information
analytical data or investments charts.can be displayed on a graphical chart. There are
Fundamental Analysis-various software where study of such graph can be
Fundamental analysis involves careful study ofdone very effectively and easily to study the
company's financial operations, economic condition,patterns and trends. These patterns further used to
assets, debts, management, products and completion.determine when to buy or sell a security.
Thus fundamental analysis is based on the study ofMajority of the day traders rely on technical analysis
financial and industry information of a company toto make their trading decision. There are many
predict the movement of the price of its stock.advisories which provide stocks and equity tips on
Fundamental analysis is usually helpful in long termthe basis of technical and fundamental analysis.
investment and day traders do not rely much on it.